Arrears

Arrears (sometimes also known as an arrearage) is a legal term for the part of a debt that is overdue after one or more required payments have been missed. In short, arrears are money that is owed and should already have been paid. In HRStop, the admin can add arrears in the system for any employee.

In HRStop, an arrear is any adjustment in salary, and it can be positive or negative.

If there is any discrepancy in an employee's salary for any reason, you can use this module to add an arrear of that amount to the system, which is added/processed in that employee’s salary based on the arrear’s transaction date.

This helps in situations like:

1. If an employee was paid less than their actual salary – In this case, you can add an arrear of that amount (i.e., the amount by which the salary is less than the actual salary) to the system. This amount is processed (i.e., added) in the next month’s salary. The arrear type in this case is ‘Earning’.

2. If an employee was paid more than their actual salary – In this case, you can add an arrear of that amount (i.e., the amount by which the salary is more than the actual salary) to the system. This amount is processed (i.e., deducted) in the next month’s salary. The arrear type in this case is ‘Deduction’.

3. Leaves encashed – If the year-end process is triggered and the employee has leaves that can be encashed, the encashed leaves are added as arrears in the system and processed in the next payroll. The arrear type in this case is ‘Earning’.